Will and Holly lived in San Antonio, TX where Will was stationed in the Air Force for three years. He received new orders to move to MacDill Air Force Base in Tampa, FL. This is a permanent change of station (PCS).

They decided to make a Personally Procured Move (PPM).

Will traveled to Tampa in June to find a home to rent for his family. They wanted to find a place with a good school district for their two kids. He spent $900 on round-trip airfare, hotel, food, and rental car.

Will and Holly spent $175 on boxes, tape, bubble wrap, and mattress bags. They paid $625 for the rental truck.

On September 5, 2020, Will and Holly packed their belongings and began driving from San Antonio to Tampa. On the way, they made a side trip to visit relatives in Atlanta, GA. Their trip took a total of seven days and six nights instead of the authorized two nights for travel.

The Clarks drove their rental truck a total of 2,200 miles. The shortest, most direct route from San Antonio to Tampa is 1,725 miles.

They spent a total of $150 for entrance fees to popular attractions in Atlanta, GA. The allowable lodging per diem was $95 per night.

Will and Holly spent $700 on food and $250 on souvenirs.

They also spent $325 on storage fees in Tampa for items that would not fit in their new home because it was smaller.

Their move was estimated to cost $1,800 and the Air Force provided $1,620 in advance.

Will and Holly are U.S. citizens and have valid Social Security numbers.

1./ The net financial gain from Will and Hollys move is not included as wages on Form 1040, U.S. Individual Income Tax Return.

a. True

b. False

4. The Clarks can deduct the cost of their side trip and house hunting trip as qualified moving expenses.

a. True

b. False

5./ How many miles can Will and Holly use to calculate their qualified moving expenses? ________ miles.

c./ How much can Will and Holly claim as their total qualified lodging expenses?

a. $0

b. $95

c. $190

d. $570